EUR/JPY Long-Term Analysis: Ranging
EUR/JPY pair is in a sideways trend as it revisits level 133.00. The current upward move is likely to be short-lived as the currency pair trades in the overbought region of the market. The bullish momentum will extend to the previous high of level 133.00 where the downtrend will commence. Meanwhile, EUR/JPY is trading at level 132.12 at the time of writing.
EUR/JPY Indicator Analysis
EUR/JPY is at level 66 of the Relative Strength Index for period 14. The currency pair is in the uptrend zone but it is approaching the overbought region of the market. The index price is above the 21-day SMA and the 50-day SMA which indicates that the pair will rise to the upside. The 21-day SMA and the 50-day SMA are sloping horizontally indicating a sideways trend. EUR/JPY is above the 80% range of the daily stochastic. It indicates that the market has reached the overbought region. The currency pair is likely to decline after the upward correction.
Technical indicators:
Major Resistance Levels – 133.00, 134.000, 135.000
Major Support Levels – 128.000, 127.000, 126.000
What Is the Next Direction for EUR/JPY?
EUR/JPY is in an upward correction as it revisits level 133.00. The pair is struggling to break the recent high. Meanwhile, on February 6 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that EUR/JPY will rise but reverse at level 1.272 Fibonacci extension or level 133.14.
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